The Kroger Co (NYSE:KR) recently announced a dividend of $0.29 per share, payable on 2024-06-01, with the ex-dividend date set for 2024-05-14. As investors anticipate this upcoming payment, attention is also drawn to the company’s dividend history, yield, and growth rates. Kroger is one of the largest grocery retailers in the United States, operating over 2,700 stores under various supermarket banners. The company emphasizes its strong presence in US communities, positioning itself as a top-two grocer in most major market areas. With a significant portion of its sales coming from private-label products and a diverse range of offerings including fuel stations and pharmacies, Kroger has established itself as a key player in the industry.
In terms of dividend sustainability, it is important to look at the payout ratio and profitability of the company. The Kroger Co’s current dividend payout ratio is 0.23, indicating a solid balance between earnings and dividend distribution. The company’s profitability rank is 8 out of 10, highlighting its strong earnings performance compared to peers. With positive net income reported consistently over the past decade, Kroger demonstrates a high level of profitability.
Looking at growth metrics, The Kroger Co’s growth rank of 8 out of 10 suggests a positive trajectory relative to competitors. The company’s revenue per share and 3-year revenue growth rate indicate a strong revenue model, with revenue increasing by approximately 6.80% per year on average. Similarly, the 3-year EPS growth rate of 11.10% per year showcases the company’s ability to grow its earnings, a crucial factor for sustaining dividends in the long term. Additionally, The Kroger Co’s 5-year EBITDA growth rate of 19.00% outperforms a significant portion of global competitors.
In conclusion, The Kroger Co’s consistent dividend increases, strong financial health, and promising growth prospects make it an attractive option for investors seeking stable dividend-yielding stocks. The company’s solid performance across various key metrics bodes well for sustainable returns. Investors looking to diversify their portfolios with reliable dividend stocks may find The Kroger Co to be a compelling choice.